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MTN Prepares For Share Sale Of Jumia. by BhbHoLLAH (m): 12:09pm on February 10
Habeeblah Olamilekan
Kwara state polytechnic,ilorin
Masscommunication
Graduate, Nigeria.
African online retailer , Jumia is planning an initial public offering in New York this year that could value the business at about $ 1 .5 bn , according to people familiar with the matter.

According to Bloomberg , Jumia’ s largest shareholder MTN Group Ltd. is planning to raise as much as $ 600 million from selling its shares through the IPO, said one of the people, who asked not to be identified as the information isn ’t public .
MTN and Jumia declined to comment . MTN had been weighing a listing or private sale of its shares in Jumia, people familiar with the matter said last August.

A United States IPO would catapult Lagos , Nigeria -based Jumia into the global spotlight after seven years of rapid growth across Africa , where it provides an Amazon. com Inc .- like service and has platforms in 13 countries . Jumia is a rare so- called unicorn in Africa – a private company valued at more than $ 1 b n – being one of only three , according to research firm CB Insights .

The company was set up by French entrepreneurs Sacha Poignonnec and Jeremy Hodara in 2012 to take advantage of rising internet use in the world ’s least connected continent , as well as a lack of availability of items such as designer watches and sunglasses in Lagos stores.

Jumia will tell potential investors that two- thirds of Africa ’s 1. 2 billion people still don’ t have access to the internet , providing plenty of potential for sales growth and profitability, said one of the people. Internet giants such as Alphabet Inc .’ s Google and Facebook Inc . are among those striving to extend connectivity to the more remote and poorer parts of the continent .

MTN could be selling Jumia in New York at about the same time as an IPO of its Nigeria unit in Lagos, a move the carrier agreed to as part of a $ 1 billion regulatory fine in 2016 .
The latter will be done in two stages , with an introductory listing in the first half of this year followed by a sell down of its majority stake, Chief Executive Rob Shuter said on a recent call with investors .

A successful listing of both Jumia and the Nigeria unit could help MTN reduce debt , which increased to 69 .8 billion rand in June from 57. 1 billion rand at the end of 2017 . The rising liabilities and a dispute over non -payment of back taxes in Nigeria is weighing on the company ’ s share price, which has fallen by almost a third in the last 12 months .

Other Jumia shareholders include Goldman Sachs Group Inc ., Millicom International Cellular SA , Orange SA and Africa Internet Group , a venture backed by Goldman , MTN and Rocket Internet SE .

source: punchng.com/mtn-prepares-for-share-sale-of-jumia/

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